What is Conversational AI? 4 benefits of going conversational.

What is Conversational AI? 4 benefits of going conversational.

With increasing digitisation, the importance of Conversational AI is unquestionably growing. Conversational AI enables the communication between computers and people and offers enormous advantages to companies.

What is Conversational AI?

Conversational AI is an intelligent technology that allows users to conduct automated, natural language dialogues with computers. It includes both text-based chatbots and voice-controlled voice assistants. To communicate like a human being, Conversational AI not only captures text and speech but also recognises different dialects, emotions, and intentions of the user. Ideally, the user cannot distinguish whether the answer comes from artificial intelligence or a human being. 

How does Conversational AI work?

Conversational AI uses various technologies such as Natural Language Processing (NLP) or Machine Learning (ML) to understand, respond to and learn from the interaction. These ensure that written text or speech from the user is processed in order for Conversational AI to provide a helpful response. 

Components of Conversational AI

Conversational AI consists of different components which, taken as a whole, help to answer a user’s query. When a user makes a request or describes a problem, the application must first translate the input from the user into a machine-readable format. In the case of spoken phrases, Automated Speech Recognition (ASR) is used first. ASR ensures that the spoken word is put into text form so that it can be understood by the machine.

If the input is delivered in written form, for example via a chatbot, the application can immediately begin to decipher the meaning behind the text. To understand the meaning,  Natural Language Understanding (NLU) is applied, which is part of Natural Language Processing (NLP). 

Conversational AI Guide

In the next step, Conversational AI formulates an answer for the user, based on what was understood or how the input was interpreted. Dialogue Management formulates a suitable answer and translates it into a format that can be understood by humans with the help of Natural Language Generation (NLG). The artificial intelligence then delivers its answer in the form of text or, in the case of voice assistants, as a spoken response.  

Machine and Deep Learning are also important parts of Conversational AI. They contribute to the application learning from each response process in order to provide even better responses in future interactions.

All these components are important to ensure that a conversation is created in which users cannot distinguish whether they are communicating with a human or a bot. As a human being, Conversational AI takes in information, processes it and concludes the context in order to provide a useful answer to its counterpart. This process is fully automated and without a predefined script. 

What is the conversation in Conversational AI?

Essentially, Conversational AI is a machine with which a person can communicate as natural as possible. This includes chatbots as well as voice assistants or other message interfaces. Chatbots, in particular, have developed enormously in recent years. However, there is a big difference between the functionality of bots, from rule-based chatbots to Conversational AI. 

Rule-based chatbots are a basic input-output system, i.e. scripts and dialogues have to be predefined in advance. The chatbot can respond to predictable scenarios with previously defined keywords. If the bot recognises defined words or phrases, it answers the questions with pre-defined answers. The problem is obvious: the chatbot is not able to respond to requests individually or adapt answers, which can frustrate the user. 

Thus, a smart chatbot is therefore based on Conversational AI. Only a human or natural conversation is possible. Similar to a conversation between people, Conversational AI remembers what is written and can draw conclusions about the context. Conversational AI’s ability to process language is built into the software, i.e. the artificial intelligence already understands the language. This is in contrast to rule-based chatbots, which can only recognise and answer pre-defined scripts.

How do you know whether you are talking to a bot or a human being?

It is a complex process to have natural conversations that can adapt dynamically and are not rigidly set. However, technology has now advanced to such an extent that Conversational AI will become the standard for bots in the long term.

As chatbots become better and better at conducting conversations, the question arises of how to find out whether you are communicating with a bot or a human. The answer is that you can’t, due to hybrid solutions like Agent+AI®.  

What is Agent+AI®?

The hybrid Agent+AI® from e-bot7 combines the best of human and machine. While artificial intelligence, i.e. the bot, automatically conducts conversations, guides users through the website, pre-qualifies and makes appointments, you always have full control if and when the support team takes over. This brings enormous advantages for your company, especially in customer communication, and helps you to scale your business, increase customer satisfaction, and ease the workload of service agents. 

How can you benefit from Conversational AI?

Many companies have now implemented Conversational AI in their communication process with customers. You have to find the right use case for your company to benefit from Conversational AI. 

You can implement Conversational AI along the entire customer journey. Intelligent chatbots can relieve the support team or be an integral part of the digital marketing strategy. 

In order to obtain the maximum benefits from Conversational AI, it is essential that you set concrete goals. Think about what you want to achieve and how Conversational AI can help you achieve it. Objectives can be, for example, a 35% higher conversion rate, 50%more meetings booked, or 70% of all incoming requests automated. Concrete goals also help to find out which channels are useful and which use cases are suitable.  

4 benefits of Conversational AI

Efficient scaling

A Conversational AI chatbot is in use 24/7. So you can help more customers and work more efficiently. At the same time, you can concentrate on other things once the system is set up. 

Support for the support team

1-1 communication between customer and advisor will remain extremely important in the future. However, Conversational AI can help to relieve your support staff and take pressure off them. While the chatbot is on the front line and answers repetitive questions, account managers are responsible for complex cases. 

More sales

Once set up, Conversational AI can achieve ROI after just a few months. In the long term, you can increase customer engagement without increasing costs. Your customers become more loyal and you achieve higher sales.

Valuable data

In contrast to click chatbots, Conversational AI continuously learns from conversations with customers and prospects. The data thus gained can in turn be used to move your company forward and give you an advantage over your competitors.

Choose the right partner for your Conversational AI

When utilising Conversational AI, you need the right partner at your side. With e-bot7, you can leverage the leading, award-winning Conversational AI platform at your service. Manage all customer communication in one place. Integrate it on all channels and tools and launch within minutes. We will help you find the right use case and drive your business’ goals with Conversational AI. Schedule a demo with us here

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